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DVLA Tax Refunds: Get your car tax refunded

Car tax, road tax, Vehicle Excise Duty (VED) – whatever you call it, no one loves paying it. From hybrid and fully electric vehicles to hydrogen-powered engines, the motor industry is changing with the times. That means the rules for vehicle tax refunds are changing too.

Back in 2023, first-year car tax rates for zero-emission cars were set at £0 to encourage us to switch to greener vehicles. The same went for Alternative Fuel Vehicles (AFVs) that pump out under 50g of CO2 per kilometre. As of the 1^st of April 2025, though, those exemptions were scrapped, leaving many drivers of previously tax-exempt vehicles now paying VED as well.

As always, where there’s tax to pay it’s all too easy to end up paying too much. Here's how – and when – you can claim a vehicle tax refund for unused road tax.

Car Tax RefundsWhat is a car tax refund?

A car tax refund (sometimes called a road tax refund or vehicle tax refund) is money you get back on any vehicle excise duty (VED) that you've already paid. For example, when you declare your car as sold, scrapped or out of use, you can claim back some of the unused VED road tax you’ve paid.

It doesn’t matter whether you’re selling your car on or scrapping it altogether. You could even get a DVLA vehicle tax refund for taking your vehicle off the road while you’re out of the country for a bit.

You can only claim an unused road tax refund for any complete months when you won’t be using the vehicle. For example, if you’ve still got 4 and a half months left on your VED when you sell your car, you’ll only get back 4 months’ worth of road tax.

You could be owed a VED vehicle tax refund if your vehicle’s been:

Sold or transferred to someone else: Be sure to tell the DVLA as soon as this happens to avoid a fine. Once they know, they'll send you a DVLA tax refund by cheque within 8 weeks. If you use direct debit, it’ll be cancelled.
Scrapped, stolen or written off: If you’re scrapping your car, you'll need to use an authorised treatment facility (ATF) or a scrap or breakers yard. There's also some paperwork involved, which you can read about here. If you don't inform the DVLA, you could be looking at a £1,000 fine.
Taken off the road: You'll need to apply for a Statutory Off Road Notification (SORN). Once you've done this, you'll be sent your car tax refund by cheque for any remaining months of road tax that you've already paid for.
Exported out of the UK or registered exempt from VED: If you take your car abroad for more than 12 months you'll be owed a DVLA refund on your car tax, as it's considered a 'permanent export'. The DVLA will need to be notified, and there's paperwork involved too. You can read more about it here.
Modified: Alterations to your vehicle can sometimes change the road tax you pay on it, meaning you’re owed a DVLA tax refund. On the other hand, certain car modifications can actually increase the VED you pay. Either way, you need to keep the DVLA informed when you modify your vehicle, and claim back any tax you’re owed as a result.

Car taxHow much road tax do I need to pay?

The amount of road tax you need to pay depends on your car and its emissions. You make an initial road tax payment when your car is first registered, which covers you for the first 12 months of driving. You’ll then pay every six to 12 months at a different rate.

The first time it’s registered you make a payment in line with your vehicle’s CO2 emissions:

CO2 emissions	Diesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48)	All other diesel cars (TC49)
0g/km	£0	£10
1 to 50g/km	£110	£130
51 to 75g/km	£130	£270
76 to 90g/km	£270	£350
91 to 100g/km	£350	£390
101 to 110g/km	£390	£440
111 to 130g/km	£440	£540
131 to 150g/km	£540	£1360
151 to 170g/km	£1,360	£2,190
171 to 190g/km	£2,190	£3,300
191 to 225g/km	£3,300	£4,680
226 to 255g/km	£4,680	£5,490
Over 255g/km	£5,490	£5,490

Your ongoing payments (every six to 12 months) work out as follows:

Fuel type	Single 12-month payment	Single 12-month payment by Direct Debit	Total of 12 monthly payments by Direct Debit	Single 6-month payment	Single 6-month payment by Direct Debit
Petrol or diesel, Electric & Alternative Fuel	£195	£195	£204.75	107.25	£102.38

You have to pay an extra £425 a year if you have a car or motorhome with a list price of more than £40,000. You do not have to pay this if both of the following apply:

you have a zero emission vehicle
the vehicle was registered before 1 April 2025

Depending on your vehicle and circumstances, other vehicle tax rates may apply instead. Check the HMRC site here for details on:

Cars registered between the 1^st of March 2001 and the 31^st of March 2017.
Cars or light goods vehicles registered before the 1^st of March 2001.
Other kinds of vehicles.

Use the RIFT mileage claim calculator to claim back your travel tax

If you’re using your vehicle for work travel, it’s not just your car tax refunds you have to claim. Every mile you put under your wheels for work each year earns you some tax back from HMRC. The catch is, you need to keep accurate records of your work travel to claim back what you’re owed.

On average, British workers spend an astonishing 7.5 days on the road for work per year, clocking up thousands of pounds in travel costs. If you’re shelling out from your own pocket for essential work travel, then you need to be claiming your yearly travel tax refunds.

Our mileage calculator is free to use, and will give you an instant estimate of the tax refund you could claim. Average 4-year refunds come to around £3,000 – so plug in a few details about your mileage and vehicle, then talk to RIFT about putting that cash back in your pocket.

Mileage Claim Calculator

Car Tax RefundDo I need to cancel road tax when I sell my car?

When you’re getting rid of a car, you should definitely cancel your VED road tax. Otherwise, you’ll have paid vehicle tax for a car you’re no longer using.

Again, you can only claim a vehicle tax refund for any full months of unused road tax you’ve paid after you no longer own the vehicle. The paperwork involved depends on whether you’re selling it or scrapping it at a recycling centre:

Section 9 of your V5C/3 certificate if you’re selling it on to a trader, dismantler or insurer. This section needs to be signed by both you and the vehicle’s new registered keeper, then you send it on to the DVLA.
A Certificate of Destruction from a recycling centre.

Can I get a car tax refund if I'm registering a car as off-road?

Yes! No matter why your car’s off the road, you should still claim a vehicle tax refund for any full months you won't be using it. Again, you'll need to speak to the DVLA to get this done.

It all starts with a Statutory Off Road Notification (SORN). You can handle this online, over the phone or through the post. It usually takes about 6 weeks to get your cheque through your door.

Claiming car tax refundsHow do I get a DVLA refund on my road tax?

So, how do you ‘untax’ your car? The documents you need depend on why you’re no longer using the vehicle. Here are the steps:

Tell the DVLA why you’re cancelling your VED road tax
Whether you’ve sold the vehicle, scrapped it or just taken it off the road temporarily, give the DVLA all the details.
Claim back your unused road tax
You can claim your car tax refund online or through the post. Grab your V5C, your registration number and the date your vehicle was sold/scrapped/exported, etc. Depending on your situation, you might need other documents, like a SORN.
Wait for your vehicle tax refund
The DVLA will look your claim over and decide whether you’re owed a VED refund for unused road tax. If you are, they’ll let you know in a letter or email. Online claims tend to be quicker, at 3-5 working days on average. Postal claims can take up to 6 weeks, though.

If you’re just leaving your vehicle in a garage for a few months, you can use a Statutory Off Road Notification (SORN). Your SORN can take effect either immediately or at the start of the following month. To cancel straight away, you use the 11-digit number on your log book (V5C). To cancel from the first day of the next month, use the 16-digit number from your V11 vehicle tax reminder letter.

Assuming the vehicle’s registered in your own name, you can handle your SORN online. Otherwise, you’ll need to do it by post. If you pay your VED by direct debit, it’ll be cancelled automatically. Any car tax refund you’re owed will come by cheque.

If you’re selling or scrapping your car, or it’s been written off or stolen, you’ll need different paperwork to get your DVLA tax refund. For instance, when you sell a vehicle or transfer it to a new owner, you need to get in touch with the DVLA as soon as possible to avoid a possible fine. Once that’s sorted, you’ll get your DVLA tax refund cheque in the post, and your direct debit will be cancelled if you’ve got one.

Visit the vehicle tax refund page of the government website for more on cancelling your vehicle tax and claiming a DVLA tax refund.

When will I get my car tax refund?How long does it take to get my DVLA tax refund?

Car tax refunds generally take up to 6 weeks to come through. If you’re still waiting for your VED to be refunded after 8 weeks, it’s time to contact the DVLA.

Top vehicle tax refund tipsTips from RIFT Refunds

To make sure you get the maximum amount possible in your vehicle tax refund:

Do it as quickly as you can
You only get back the full months you’ve already paid for. Doing it immediately could mean the difference between securing an extra month’s car tax refund or missing out. Plus, if you don’t let the DVLA know straight away, you could end up with a fine.
Get to know the paperwork
The paperwork you need for your car tax refund depends on why the vehicle will no longer be on the road. It could be a SORN or a simple online update to the DVLA. If you’re scrapping your car at a recycling centre, though, you’ll need confirmation from yourself and the centre to make it official.
Understand exactly how you do it
Can you do it online? Do you need to send documents in the post? Understanding the process will get your vehicle tax refund sorted as fast as possible without ending up with a fine.

What about your next car? If you’re selling your car and buying a new one – and want to cut down on the potential road tax you’ll need to pay – it could make sense to go electric next time and benefit from the road tax breaks for electric vehicles. The rules have changed in 2025, so you’ll no longer automatically be exempt from VED. Even so, with electric vehicles having a first year VED rate of just £10, it’s still a decent money saver.

HMRC Tax RebatesClaim back overpaid tax with RIFT Tax Refunds

RIFT Tax Refunds are the UK's leading experts when it comes to claiming back overpaid tax from HMRC. We've claimed back over £380 million in tax rebates for over 160,000 people like you since 1999.

You can claim tax back on things like:

Travel to temporary workplaces
Accomodation costs
Uniform costs
Professional subscriptions, unions, or license fees
Training course expenses

To get started, answer our 4 questions to see if you looks like you might have a claim. Click on the green button below to claim your tax rebate back.

Start your claim for free >

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DVLA Tax Refunds: Get your car tax refunded​